New Delhi: The second largest public sector bank in the country, Punjab National Bank (PNB) has hiked the marginal cost of funds-based lending rate (MCLR) by 0.05%. The new rates will come into effect from today, September 1. Due to this hike, the equated monthly instalments (EMIs) for a variety of consumer loan products including car, personal and home will go up.
MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.
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The benchmark one-year tenor MCLR is hiked to 7.70% from 7.65%. One-year tenor MCLR is used to price most consumer loans such as car, auto and personal loans. The three-year MCLR is increased to 8%. Three-month and six-month tenor will be in the range of 7.10-7.40%. The MCLR on overnight tenor will be 7.05%.
Earlier in August, PNB increased the repo-linked lending rate to 7.90%, up by 0.50%.
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